[Updated] Question of the Day: How much does the retail price for roses increase around Valentine's Day?
Answer: Around 40%
Early January price: $36/dozen roses
Valentine's Day week price: $50/dozen roses
- What economic concept helps to explains this surge in pricing?
- What other examples of items/services can you think of that have prices that change based on demand?
- What challenges do you think rose growers encounter around Valentine's Day?
Behind the numbers (Brads Deals):
Stating the obvious, flowers must first be planted and grown, well ahead of the February demand. "After the Christmas season demand for red roses are filled, growers need 50 to 70 days to produce enough roses for the Valentine's demand," says Liz Castoro, Associate Director, Enterprise Public Relations for 1-800-Flowers. "Valentine's inspires the heaviest demand for long-stemmed roses, and several rosebuds are [sacrificed] to create a single long-stemmed rose."
Here's another QoD with a Valentine's Day theme: How much does the average adult spend on Valentine's Day?
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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